Pay down your credit card debt.  On January 7, 2003, President Bush proposed a plan to stimulate the economy.  Key to his plan are reducing taxes and putting more money in the paychecks of working folks.  Under the president's proposal to speed up tax relief, 92 million taxpayers would receive, on average, a tax cut of $1,083 in 2003.

Let's take the average tax break of roughly $1,100.  If you are like the average cardholder, you have about $8,000 in charges on your credit cards, maybe more.  You might be inclined to think $1,100 wouldn't make a significant dent in your balance.  But keep thinking that way and you'll stay in debt purgatory.  For example, let's suppose you're making only the 2 percent minimum payment of $160 on the $8,000.  At 18 percent, it will take you 647 months to be rid of the debt—almost 54 years!  In that time, you will pay $22,931.52 in interest. But if you paid an extra $91.66 a month (that's the tax break of $1,100 divided by 12 months), and kept paying it, you would pay off your credit cards in 44 months.  As a result, you would pay $2,951.08 in interest.  I think that's worth the effort.

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